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I have a cheque to pay in today, i also have to pay a bill, fairly urgently. which i need the value of the cheque to pay.
if i write a cheque to pay the bill tomorrow it will clear after the cheque i recieve has cleared, is this ok.
The bank aren't going to expect my incoming cheque to be cleared before i do anything???? i am not going to get stung for charges etc etc.
Just this stupid 6 day clearing cycle.
Some banks will credit the amount instantly, but if it bounces will sting you for charges. Others will just show it as unavailable. Most will tell you the max time it will take to clear. You could always date your next cheque a couple of days in the future or try and get the people paying you to do it electronically.
(a) it's not 6 days
(b) post-dating a cheques is (technically) illegal
I think the way it works is that the bank takes the money from the person writing the cheque instantly, holds on to it for several days, then pays it to the person cashing the cheque after that time.
So, no, you can't overlap cheques like that.
Post dating the cheque, as mikewsmith says, would be one way round it.
It's a long time since I cashed a cheque, but I know I paid for express clearance once.
I think it cost £10 and the money was transferred instantly, like a bank transfer.
If you're desperate, and it's going to work out cheaper than the overdraft fee, that's worth looking in to.
Edit to add;
Can you get your overdraft limit raised ?
That can usually be done there and then in the bank.
(b) post-dating a cheques is (technically) illegal
No it isn't.
Not even "technically"
scotroutes, it is 6 days for full clearance,
according to everything i have read, banks ombudsman etc, the following applies, 2 days interest, 4 days, cash available, 6 days cheque cleared.
It is nonsense though. I worked in a bank many years ago, and when the piece of paper had to be manually input at the bank by a data entry clerk, then go to a clearance centre, then be delivered to the drawing bank, who then sent the funds to the receiving bank, and this happened millions of times each day, it was understandable. In this day of modern computering and instant access to funds, it's ridiculous. The money should clear instantly. You bank will likely have a service to achieve this, for a fee.
They do this on purpose to screw people for charges.
They do this on purpose to screw people for charges.
I think it's called maximising returns for shareholders....
I'd suggest going to you bank and talking to them - if the overdraft issue is likely to happen (which I reckon it will) then they should be able to offer a short term overdraft to cover it and avoid you getting hit with fees (thohgh you'll probably have some interest to pay depending on how much the values are).
I have no objection to being charged for a service, if it's tangible and real. I object to being charged for a made-up service, where they take £12 off you to deal with an issue that doesn't exist, they just invented it in order to justify the charge.
Maximising the return for shareholders, indeed.
This kind of thing is up there with charging people £5 to get on an airplane first, then charging some other people £10 to get ahead of the £5 people. Ludicrous.